Total votes: 7

Cash and cash equivalents at year ending 30 June:
  2009: $1,395,072
  2008: $1,745,663

NeuroDiscovery Limited (NeuroDiscovery) is an Australia-based neuroscience services provider and a drug development company.

The Company, along with its subsidiaries, is engaged in the development of compounds for the treatment of pain, in particular neuropathic pain, and provision of specialized electrophysiology services to the biopharmaceutical industry. NeuroDiscovery has 100% interest in NeuroSolutions Ltd, a biotechnology company.

The Company operates in two business segments:

1. Contract services, which operates in the field of neurology providing specialist services to the biopharmaceutical sector

2. Research and Development, which focuses on compounds for the treatment of neuropathic pain. During the fiscal year ended June, 30, 2008, the Company completed two Phase I trials for its development compound, NSL- 043, in partnership with Sosei Group Corporation. It also completed a Phase II trial for NSL-101.

Two Phase II trials of NSL-101 were completed in 2008, both to appropriate clinical trial standards. The compound was effective in the first trial, where it prevented pain associated with root planing and scaling, a dental procedure used to combat periodontitis. In the second clinical trial, for the treatment of post-operative pain caused by the extraction of an impacted third molar (“wisdom tooth”), the Company was unable to measure NSL-101’s efficacy due to unexpected confounding factors.

The results from the periodontitis trial demonstrate that NSL-101 is an effective analgesic, and this proof of concept significantly enhances its asset value. The study compared the analgesic efficacy and safety of NSL-101 gel with a local anaesthetic, which is the gold standard for pain prevention during scaling and root planing. This procedure is used to treat moderate to severe periodontitis-gum inflammation caused by the build-up of plaque bacteria on the teeth and is typically associated with significant pain. NSL-101 was highly effective and well tolerated. It was found to be equally effective as the local anaesthetic gel but with no adverse effects.

The wisdom tooth extraction study was unable to evaluate the analgesic efficacy of NSL-101 compared with placebo. The study was designed to ensure that patients would not experience severe pain at any time. Thus for ethical reasons, a conservative estimate of the local anaesthetic’s duration was used. However, the anaesthetic lasted significantly longer than expected and this masked any analgesic effects of NSL-101, compromising the study.

The proof of concept achieved with the Company’s Phase II trial of NSL-101 in periodontitis has led to a new patent filing. This helps to protect NeuroDiscovery’s intellectual property position and will form an important part of the Company’s data package as it goes forward into licensing negotiations.

Institutional Investors involved:
Mr Harry Karelis B.Sc (Hons) MBA CFA F.Fin FAICD, Non-Executive Director
Qualifications and Experience: Mr Karelis graduated from The University of Western Australia with Bachelors and Honours in Science
majoring in Biochemistry and Microbiology as well as a Masters in Business Administration. He is a Fellow
of the Financial Services Institute of Australia, a Fellow of the Australian Institute of Company Directors
and has qualified as a Chartered Financial Analyst (CFA) from the CFA Institute in the United States.

Mr Karelis is the founder and Managing Director of Titan BioVentures Management Pty Ltd which is the
investment manager of BioTech Capital Ltd. Mr Karelis has led investments in drug discovery, regenerative
medicine, medical devices and several other technology platform areas.

Prior to establishing BioTech Capital Mr Karelis worked in the financial services industry with roles in
financial analysis and funds management both in Australia and overseas.

During the past three years he has held the following ASX listed company directorships; Biotech Capital,  Phylogica Ltd